Zoom Communications, Inc. · NASDAQ:ZM

Zoom Communications — Q4 2021 Earnings Presentation

26 slides from Zoom Communications's earnings presentation, Mar 1, 2022

  1. Slide 1: Zoom Video Communications Q4 FY21 Earnings

    Zoom Video Communications Q4 FY21 Earnings March 1, 2021 © 2021 Zoom Video Communications, Inc. 1

  2. Slide 2: Use of Non-GAAP Financial Measures

    Use of Non-GAAP Financial Measures In addition to the financials presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this presentation includes the following non-GAAP metrics: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating margin, non-GAAP ope

  3. Slide 3: Safe Harbor Statement

    Safe Harbor Statement This presentation and the accompanying oral presentation have been prepared by Zoom Video Communications, Inc. (“Zoom”) for informational purposes only and not for any other purpose. Nothing contained in this presentation is, or should be construed as, a recommendation, promise

  4. Slide 4: Safe Harbor Statement (continued)

    Safe Harbor Statement (continued) Additional risks and uncertainties that could cause actual outcomes and results to differ materially from those contemplated by the forward-looking statements are included under the caption “Risk Factors” and elsewhere in our most recent filings with the Securities

  5. Slide 5: Strong Zoom Phone Wins

    Strong Zoom Phone Wins © 2021 Zoom Video Communications, Inc. 5

  6. Slide 6: Third Party Recognition for 2020 Achievements

    Third Party Recognition for 2020 Achievements Okta's Businesses at Work Report 2020: Most Popular Video Conferencing Apps 2020 Company of the Year © 2021 Zoom Video Communications, Inc. 6

  7. Slide 7: Massive Opportunity in Telephony $23B+

    Massive Opportunity in Telephony $23B+ Total Addressable Market by 2024* *IDC Report: Worldwide Unified Communications and Collaboration Forecast, 2020–2024 © 2021 Zoom Video Communications, Inc. 7

  8. Slide 8: Zoom Phone Comes of Age

    Zoom Phone Comes of Age Growth in # of Zoom Phone FY21 Zoom Phone Revenue customers1 with >10 employees Breakdown 2 18 Customers with over 10k paid seats 1 The numbers of customers are rounded down to the nearest hundred. © 2021 Zoom Video Communications, Inc. 2 Up Market defined as customers with >

  9. Slide 9: Strong FY21 Performance

    Strong FY21 Performance 326% 37.1% Yr/Yr $1.4B Revenue Growth Non-GAAP Operating Free Cash Flow1 Margin1 © 2020 Zoom Video Communications, Inc. 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. 9

  10. Slide 10: Rapid Revenue Growth in Q4

    Rapid Revenue Growth in Q4 (in Millions) © 2021 Zoom Video Communications, Inc. 10

  11. Slide 11: Enterprise Traction

    Enterprise Traction Customers generating >$100K in trailing 12 months revenue 355 Record number of quarterly net adds for the segment © 2021 Zoom Video Communications, Inc. 11

  12. Slide 12: Rapidly Growing Customer Base

    Rapidly Growing Customer Base Customers1 with more Revenue Share by than 10 employees Customer Cohort © 2021 Zoom Video Communications, Inc. 1 The numbers of customers are rounded down to the nearest hundred. 12

  13. Slide 13: Strong Net Dollar Expansion Rate

    Strong Net Dollar Expansion Rate TTM Net Dollar • 11th consecutive quarter above 130% Expansion Rate1 • Demonstrated ability to land and expand >130% • Reflects trust and loyalty with existing customers in Q4FY21 1We calculate net dollar expansion rate as of a period end by starting with the ARR fro

  14. Slide 14: Growing International Presence

    Growing International Presence Revenue Share by Region1 Revenue1 Yr/Yr Growth (in millions) 7.9% 13.3% $118 11.6% ROW 687% 19.5% $171 80.5% Americas 67.2% $593 292% $15 $22 $151 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Americas EMEA APAC Americas EMEA APAC © 2021 Zoom Video Communications, Inc. 1 Subtotal re

  15. Slide 15: Q4 FY21 Expenses and Margins

    Q4 FY21 Expenses and Margins Q4 FY21 GAAP Non-GAAP1 Yr/Yr Yr/Yr Results Results Revenue $882 million 369% $882 million 369% Gross Margin 69.7% (1,300 bps) 71.3% (1,295 bps) Research & Development 5.9% (504 bps) 3.5% (511 bps) Margin Sales & Marketing Margin 24.3% (2,935 bps) 18.1% (2,658 bps) Genera

  16. Slide 16: Growing Future Revenue under Contract

    Growing Future Revenue under Contract Yr/Yr Growth Total RPO1 Yr/Yr Growth (in millions) $1,751 $1,751 $531 $867 132% 132% $604 $604 283% $1,220 225% $229 $374 $883 $375 $231 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Deferred Revenue Unbilled Current RPO Non-Current RPO 1 Remaining Performance Obligations (RP

  17. Slide 17: Rapid Cash Flow Growth

    Rapid Cash Flow Growth Operating Cash Flow Free Cash Flow1 (in millions) (in millions) $377.9 $399.4 993% 1,321% Yr/Yr Yr/Yr $36.6 $26.6 Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 1 See appendix for a reconciliation of non-GAAP to GAAP financial measures. We define FCF as GAAP net cash provided by operating ac

  18. Slide 18: Q1 and Full Fiscal Year 2022 Outlook

    Q1 and Full Fiscal Year 2022 Outlook Q1 FY22 FY22 Revenue $900 - $905 million $3,760 - $3,780 million Non-GAAP Operating $295 - $300 million $1,125 - $1,145 million Income Non-GAAP Weighted 307 million 311 million Average Share Count Non-GAAP EPS $0.95 - $0.97 $3.59 - $3.65 Note: A reconciliation of

  19. Slide 19: $1 Million Supporting Education Innovation

    $1 Million Supporting Education Innovation Our Six Grant Partners: © 2021 Zoom Video Communications, Inc. 19

  20. Slide 20: Questions

    Questions

  21. Slide 21: Thank you

    Thank you

  22. Slide 22: Appendix

    Appendix

  23. Slide 23: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in thousands) Q4FY20 Q4FY21 FY20 FY21 Gross Profit Total Revenue $188,251 $882,485 $622,658 $2,651,368 GAAP Gross Profit $155,704 $615,201 $507,262 $1,829,379 (+) Stock-based compensation expense and related payroll taxes $2,874 $13,162 $8,000 $36,223 (+) Acquisiti

  24. Slide 24: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in thousands) Q4FY20 Q4FY21 FY20 FY21 Operating Margin Total revenue $188,251 $882,485 $622,658 $2,651,368 GAAP operating profit $10,553 $256,117 $12,696 $659,848 (+) Stock-based compensation expense and related payroll taxes $27,892 $101,853 $75,971 $290,832 (+) C

  25. Slide 25: GAAP to Non-GAAP Reconciliation

    GAAP to Non-GAAP Reconciliation ($ in thousands) Q4FY20 Q4FY21 FY20 FY21 Free Cash Flow Cash flow from operations $36,554 $399,396 $151,892 $1,471,177 (-) Purchases of PPE $9,952 $21,455 $38,084 $79,972 Free cash flow $26,602 $377,941 $113,808 $1,391,205 © 2021 Zoom Video Communications, Inc. 25

  26. Slide 26: Historic Metrics

    Historic Metrics © 2021 Zoom Video Communications, Inc. 26

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